Homeownership Posts - 15 is the New 30

15 is the New 30

A 30-year mortgage does offer lower payments, but a shorter term like 15 or 10 years can save you tens of thousands of dollars in interest. See for yourself:

$125,000 Mortgage

Interest Rate

APR

Monthly Payment

Total interest repaid on the Lifetime of the Loan

30-Year Mortgage

4.50%

4.673%

$633.36

$103,007.02

15-Year Mortgage

4.00%

4.300%

$924.61

$41,429.70

That’s a savings of $61,577.32 over the lifetime of the loan.*

Plus you can build your equity faster. Equity builds more slowly with a 30-year mortgage because it takes longer to pay down the principal balance. With a 5, 10, or 15-year mortgage term, the equity builds much more quickly since you pay less interest.